Dutch beer sales collapse amidst crippling tax hikes

Dutch beer sales have nosedived 5.1%, with non-alcoholic beer in particular plummeting 9.4%, according to Nederlandse Brouwers.

According to the Dutch brewers association, the overall decline in beer sales is in the country which struck during the first half of 2023 is due to the 8.4% increase in excise duty on alcoholic beer and an almost 200% increase in consumption tax for non-alcoholic beer, pushing prices up.

Reports via Food Ingredients First (FIF) said that the association has revealed that sales for Pils and special beer were down by 4.4% and 4.6%, respectively with government taxes and bad weather creating the perfect storm.

The association also identified that people also notably drank less due to the poor weather, which led to fewer opportunities for barbecues and drinking in pub gardens.

Local reports outlined that, typically, the UEFA European Football Championship would have generated a boost in beer sales, but this year it did not help sales. This, along with drinkers getting alcohol from across the border in neighbouring countries like Belgium or Germany has also reportedly had a knock on effect on domestic sales.

Nederlandse Brouwers stated that it is concerned about the sudden drop in non-alcoholic beer consumption in particular and has called upon its government to scrap the tax in a bid to support the industry.

Between 2010 and 2023, sales of non-alcoholic beer have alledgedly increased by more than 500% in the Netherlands. Despite this, with demand being high, the category has continued to thrive, despite the sector struggling.

A spokesperson for Nederlandse Brouwers told FIF that it does not believe that the poor sales performance of non-alcoholic beer is linked to saturation in the market, but did highlight how one in 14 beers in the country is currently non-alcoholic and expects this to go to one in 10 beers within a few years.

The spokesperson explained to the paper: “What does not help is that the government has made alcohol-free beer more expensive. A wrong measure also from the point of view of encouraging responsible beer consumption and prevention. We hope the new government realises that the tax increase now implemented is far too steep. There are several ways to do something about it. From exempting alcohol-free from the consumption tax, introducing a 0% rate for alcohol-free to choosing a scenario where the rate will be limited.”

On 1 January 2024, the Dutch government increased consumption tax on non-alcoholic drinks from €8.83 (US$9.60) per hectolitre to €26.13 (US$28.40) per hectolitre.

Nederlandse Brouwers chairman Fred Teevan added: “Now that the holiday season has arrived, we hope people will go to the terrace or beach more often to drink a beer together. Or enjoy the many beautiful beers brewed by Dutch brewers during a barbecue. It would be nice if we finally had a longer period of sunny weather. In any case, breweries are ready to respond to a beautiful summer.”